MORNING NEWS UPDATE: OCTOBER 26, 2025
- Ongoing Government Shutdown Impacts Millions: The federal government shutdown, now in its fourth week, has left millions of federal workers without paychecks, with essential employees facing delayed compensation. National parks and monuments remain closed, affecting tourism and local economies.
- Hurricane Melissa Threatens Caribbean Islands: Cuba, the Dominican Republic, Haiti, and Jamaica are preparing for Hurricane Melissa, forecasted to intensify into a Category 3 or stronger storm, potentially causing significant flooding and infrastructure damage.
- Wheat Farmers Struggle Amid Trade War: U.S. wheat producers in the Pacific Northwest are reeling from low prices due to President Trump's trade policies, though one Oregon reservation-based flour mill is expanding production 12-fold as a bright spot.
Government Shutdown and Funding: The ongoing federal government shutdown continues, with a secretive private donor, identified as billionaire and Trump backer Timothy Mellon, contributing $130 million to help pay U.S. troops.
The shutdown stems from a standoff over healthcare subsidies. Trump's Asia Tour & Tariffs: President Trump has embarked on a tour of Asia.
He attended the ASEAN summit in Malaysia, where he oversaw the signing of a ceasefire agreement between Thailand and Cambodia. Concurrently, he announced a 10% increase in tariffs on Canada in retaliation for a Canadian ad critical of his trade policies, further escalating trade tensions. Student Loan Forgiveness: The Trump administration clarified that federal taxes will not apply to student loans forgiven under certain Income-Driven Repayment (IDR) plans in 2025, but this tax exemption is temporary, set to expire at the end of the year.
Mass Shooting: A shooting at a historically Black university's homecoming event in Pennsylvania left one dead and six injured.
- Government Shutdown Sparks Partisan Clashes: House Minority Leader Hakeem Jeffries criticized Senate Republicans' partial pay bill for essential workers as a "political ploy," demanding a comprehensive solution to reopen the government and address healthcare and cost-of-living issues.
- Treasury Secretary Bessent on "Face the Nation": In a CBS interview, Treasury Secretary Scott Bessent discussed economic strategies amid the shutdown, emphasizing fiscal stability.
- Trump Administration's White House Renovations: The destruction of the historic White House Family Theater for a $300 million ballroom has drawn criticism for prioritizing luxury over cultural preservation.
- Louvre Crown Jewels Heist Suspects Arrested: Two suspects were detained in Paris following the daring theft of eight priceless pieces from France's Crown Jewels at the Louvre, leaving the nation grappling with a profound cultural loss.
- India-ASEAN Summit Highlights Strategic Ties: Prime Minister Narendra Modi emphasized the partnership's role in global stability and growth during the annual summit, calling it a pillar of India's Act East Policy.
- Russia Escalates Attacks on Ukraine's Energy Grid: Reports indicate a record number of strikes in 2025, exacerbating the humanitarian crisis as winter approaches.
- Former French President Sarkozy Begins Prison Term: Nicolas Sarkozy entered a Paris prison to serve a five-year sentence for corruption-related charges.
Louvre Heist Arrests: French police have arrested two suspects in connection with the brazen, multi-million dollar jewel theft at the Louvre Museum in Paris that occurred last week.
Russia's Missile Test: President Putin claimed Russia successfully tested its nuclear-capable, nuclear-powered cruise missile, the Burevestnik, which he said flew for 15 hours.
International Diplomacy & Trade: China's trade negotiators reached a "preliminary consensus" with the U.S. ahead of the crucial meeting between President Trump and President Xi Jinping later this week, as both nations continue to navigate a trade war.
ASEAN Summit: The Association of Southeast Asian Nations (ASEAN) welcomed its 11th member, East Timor, at the annual summit in Malaysia.
- Men Falling Behind in Education and Economy: A new report highlights how American men are lagging economically and educationally, fueling discussions on masculinity, resilience, and policy reforms.
- 161 Students Honored as 2025 U.S. Presidential Scholars: The Department of Education announced recipients, recognizing academic excellence and leadership.
- Push for Equitable Dual-Language Programs: Experts advocate for expanded bilingual education, noting benefits for all students but highlighting equity gaps in access.
- The 1619 Project Creator Discusses Political Climate: Nikole Hannah-Jones addressed the project's impact amid 2025's cultural debates in education.
Affirmative Action Impact: An Associated Press analysis found that Black enrollment is waning at many elite colleges following the ban on affirmative action in admissions.
Zero-Enrollment Schools: In India, Ministry data revealed that approximately 8,000 schools with zero student enrollment employ about 20,000 teachers.
- U.S. Trade Deficit Widens in Latest Data: The Bureau of Economic Analysis reported a growing goods and services deficit for July 2025, amid ongoing trade tensions.
- IMF Upgrades U.S. and Global Growth Forecasts: Attributed to AI investments buffering against trade and immigration policies, though 2026 projections remain cautious.
- Trump Confident on U.S.-China Trade Deal: The president expressed optimism for a resolution with Xi Jinping, while inking new agreements with Southeast Asian partners on trade and minerals.
- Net International Investment Position Hits -$26.14 Trillion: Q2 2025 figures reflect widening U.S. foreign liabilities.
Global Growth Forecast: The IMF's October 2025 World Economic Outlook (WEO) projects global growth to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, citing a landscape marked by greater protectionism and fragmentation.
Federal Reserve and Interest Rates: The U.S. Federal Reserve is expected to proceed with a quarter percentage-point rate cut despite the ongoing government shutdown having halted the release of most official economic data. The decision is being weighed against persistently high inflation, which is partly attributed to tariffs.
Tariff-driven Uncertainty: The escalating global trade tensions, including the new U.S. tariffs on Canada and previously imposed steep tariffs on Indian goods, continue to fuel economic uncertainty and prompt nations to focus more on domestic consumption to drive growth.
- China's "Future Industries" Strategy Launched: The National Development and Reform Commission outlined a 10-year plan investing in quantum tech, brain-computer interfaces, and embodied AI to drive self-sufficiency.
- AMD Reaches $200 Billion Market Cap Milestone: The semiconductor giant's surge underscores booming demand for AI chips, though it highlights supply chain strains.
- Beijing's Five-Year Plan Targets Tech Independence: Heavy focus on semiconductors, AI, and robotics to counter U.S. restrictions.
- AI Fears in Broadcasting: Joe Rogan voiced concerns over AI replacing UFC commentary roles in a recent podcast.
Space Colonization Prediction: Amazon founder Jeff Bezos predicted that by 2045, millions of people could be living in space, though he suggested robots would handle most of the labor-intensive tasks on other celestial bodies.
Shipbuilding Collaboration: HII (a U.S. shipbuilder) and HD Hyundai Heavy Industries (HHI) of South Korea signed a memorandum of agreement at the APEC 2025 forum to collaborate on distributed shipbuilding and pursue strategic teaming opportunities for U.S. Navy auxiliary and commercial vessels.
AI and Digital Governance: The European Union (EU) is accusing major tech companies, including Meta and TikTok, of breaching transparency rules related to their platforms.
- Preserving Lymph Nodes Boosts Immunotherapy Success: New research shows keeping lymph nodes during cancer surgery enhances T-cell responses, improving patient outcomes.
- Exercise Counters Western Diet's Mood Effects: Studies reveal running restores gut metabolites and balances hormones like insulin, mitigating depression risks.
- New "Three-in-One" Iron Supplement: Combines iron with probiotics and prebiotics to restore levels without gut inflammation.
- Moderate Flu Season Expected for 2025-26: Health officials urge vaccinations, while Medicare open enrollment begins for plan changes.
Dietary Guidance Controversy: U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. is reportedly planning to issue new dietary guidance that would encourage Americans to eat more saturated fats, a move that contradicts decades of established dietary recommendations and has alarmed many health experts.
- NBA: Trail Blazers Upset Warriors 139-119: Deni Avdija led Portland with 26 points in Tiago Splitter's debut as interim coach against Golden State.
- F1 Gran Premio de Mexico: Drivers gear up for the high-stakes race at Autodromo Hermanos Rodriguez in Mexico City.
- NASCAR Xfinity 500 at Martinsville: The playoff push intensifies on the short track in Ridgeway, Virginia.
- Cricket: England Tour of New Zealand ODI Series Begins: The first match kicks off at Mount Maunganui, with New Zealand hosting.
World Series: The Los Angeles Dodgers evened the World Series against the Toronto Blue Jays with a 5-1 win in Game 2, highlighted by a rare complete game pitched by Yoshinobu Yamamoto.
NFL Review: The NFL announced it would review the Baltimore Ravens' injury report concerning star quarterback Lamar Jackson.
